GBP/JPY gearing up around 155.25 ahead of EU Markit data

• GBP/JPY bounces in Asia, could find some volatility from EU data
• BoE interest rates, meeting minutes to come later this week

GBP/JPY managed to bounce in Tokyo to trade around 155.25 after the pre-Asia session set up to continue last Friday's post-NFP slide. 

The Sterling will be gearing up for a hefty dose in the latter half of the week with the BoE's Interest Rate Decision, Monetary Policy Summary, and the bank's Meeting Minutes, all  hitting the markets at once on Thursday at 12:00 GMT; December data for Industrial and Manufacturing Production will round out the week at 09:30 on Friday. Meanwhile, European Markit Services PMIs beginning at 08:15 could provide some knock-on volatility for the pair today.

The Yen has a relatively data-light week by comparison, but the Yen has had a bumper run lately with traders piling into the safer Yen amidst equity markets faltering at record high levels and markets anticipating a quickened acceleration of tapering easing programs from the BoJ, despite the BoJ's entire leadership taking turns trying to talk down the currency, stating Japan is simply not economically ready for an easing programs to start reversing.

Despite the Yen's strength, the Sterling spent most of 2017 gaining ground, higher against the Japanese currency 13 out of the last 15 weeks; with price reversing early in the Tokyo session, the rest of the day is well-equipped to see itself as a bull day for GBP/JPY.

GBP/JPY Technicals

Technical indicators on Daily charts continue to fizzle in middling territory as GBP/JPY continues to drift up on low volatility. With the recent turnaway from two-year highs, H4 pattern traders could be anticipating a drop to the (very long) trendline which is miles below price at 152.100. Intraday traders will count themselves lucky if price makes a decisive play for last Friday's low of 155.42, while support for the current session comes from the last swing support point of 154.90.

Today's pivot points:
R2: 157.03
R1: 156.27
PP: 155.84
S1: 155.08
S2: 154.65